Deutsche Bank Analyst Satoru Kikuchi Believes Nintendo Is Set For A Fall

Deutsche Bank analyst Satoru Kikuchi believes that Nintendo is headed for a fall. Though Nintendo has dominated the business with its DS and Wii consoles, Kikuchi thinks that its days of ridiculous profitability are numbered. Gamesindustry.biz has reported:

"Satoru Kikuchi, has assigned a sell rating to Nintendo's stock, claiming the company has hit its peak and faces a downwards trend. While he expects Nintendo to report profits this month in excess of guidance, he predicts a decline in profits of 18 percent the following year, and a further 19 per cent in 2011 'as sales slow'."

While DS and Wii sales will eventually slow down as the market gets saturated, that doesn't appear to be happening any time soon. Kikuchi's argument is based on the dubious phrase "if content remains unchanged." That just seems silly to me. Both platforms will have plenty of new content, both from Nintendo and third-party publishers. Kikuchi didn't mention the DSi either; Nintendo's latest handheld has done very well in Japan and is hitting other territories soon. Kikuchi's rating seems a bit flimsy to me.

Do you guys and gals agree? Is Nintendo set for a major fall in the next few months? Or will its sales dominance continue?